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Oil Market Shifts Amid Red Sea Disruptions and Refined Product Dynamics
When talking about the oil industry, we can see some recent disruptions in the Red Sea have brought about a notable shift in the dynamics of refined product markets. The resurgence in refining margins, triggered by these disruptions, prompted a re-evaluation of Goldman Sachs refined product crack forecasts considering the updated refining capacity outlook. The rally in prompt distillate and gasoline cracks, particularly in Europe (ARA) and the US (NYH), has outpaced Goldman Sachs initial fair value estimates by an approximate margin of $5/bbl. While on the surface refining margins seem robust, a closer examination ... (full story)